DEX or CEX ?

Ok let's trade some crypto! but the first place you’d likely turn to is an exchange.

 Now, there are three main types of exchanges to consider: Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs).

But wait a minute what is a crypto exchange?

Well, cryptocurrency exchanges are platforms, where you can buy, sell and do spot or futures trading on cryptocurrencies (or fiat currency). They act as a middlemen, making it simple to exchange different digital currencies for traditional money (like USD, EUR) or other cryptocurrencies.

Now i am little bit confused.... CEX or    DEX ?

Stay calm please! I ll explain to you right now!

CEXs work much like traditional stock markets, using an order book to match buyers and sellers. It’s like an open market with a central authority overseeing transactions. On a CEX, all users can see the full order book, enabling “price discovery” to find the “last done price” and depth of the book. The exchange takes a small fee for facilitating trades.

They operate as trustworthy brokers in deals and frequently serve as custodians, keeping and safeguarding your cash.

A Decentralized Exchange (DEX) is a type of cryptocurrency exchange that operates without the need for a central authority or intermediary. Unlike centralized exchanges (CEXs), where an organization manages the platform and user funds, DEXs are built on blockchain technology and utilize smart contracts to facilitate peer-to-peer (P2P) trading directly between users. Therefore, decentralized exchanges have no KYC or AML regulation.

Better now?

Now you have to choose which one fits you better. I propose CEX for newbies. DEX has dangers beacause you have to be a pro trader to regognize traps. CEXs are faster and user-friendly with various deposit options, providing near-instant trade settlement. DEXs, although slower and requiring more experience, allow users to retain asset custody, supporting only cryptocurrency pairs and on-chain processing.